Originally Posted by
john
Tyler, I remember this being discussed before about an article that was put out that the new increase for subscribers because of royalty payments not adding to the bottom line because it is for royalty payments. I said then and relmor just said again, they always had these royalty payments, which were taken directly from the cash they used to make from the old revenue steams subscribers created. So how the hell is a possible 22 million extra a month not going to help the bottom line, when the payments for royalties always did but this new cash never did before. Now I know it may not appear for some time because of when it gos into effect for certain subscribers but come on.
Also I would like to know something Charles brought up before, about how the hell is an 8% charge on revenue for royalties equal an 1.98 charge to a subscriber that pays 12.95, or a 1 dollar charge for a sub that pays 6.99 to 8.99. That math just does not work out unless somehow they are going to get money back for the royalties already paid out. I mean the last time I checked 8% of 12.95 was 1.036 dollars. That does not even get into the fact that most get a less rate because of the type of contract they are in, so we really should use the ARPU of 10.66 which 8% is really only .85. Now I am not intelligent but some how when even the lowest plans royalty payment is a dollar, I have to question what is the extra money (15 cents per lowest subscriber) going for. Now I am not saying that SIRIXM is not following the FCC requirments on this but that they have found a way to add in other cost that include royalty payments, weather that be administration cost or what ever the hell else it is, it is most likely cost they had to pay on there own anyway before the new royalty increase.